Mineral explorer MacDonald Mines Exploration (CVE:BMK) on Monday reported that it has closed its private placement financing with HudBay Minerals and MineralField Group, for a value of $2.5 million.
HudBay Minerals (TSE:HBM), a mining company focused on the discovery and production of base metals, invested $1.75 million on a non-flow through basis, at 13 cents a share, for a total of 13.5 million common shares. As a result, on a partially diluted basis, HudBay now owns a 19.1% stake in MacDonald.
Meanwhile, Canadian mining fund MineralField Group contributed $750,000 on a flow through basis, at 15 cents a unit for 5 million units.
Each unit entitles MineralField to one flow-through common share and one half of one non-flow through common share purchase warrant. Each warrant gives the holder the right to buy one common share at 25 cents per share for a period of two years from closing.
The company said proceeds will be used to continue its exploration efforts in the "Ring of Fire" area in the James Bay Lowlands region of Northern Ontario.
MacDonald Mines has properties in James Bay, Ontario, the LaRonge area in Saskatchewan and in James Bay, Quebec.
In May 2009, the company entered into an agreement with Virginia Mines, under which it could acquire a 50% stake in the Assinica property. Assinica consists of 79 claims covering an area of about 41 square kilometres in the Frotet-Evans James Bay region, about 100 km northwest of Chibougamau, Quebec.